Frasers Group has voted to block Boohoo’s attempt to change its holding company name to Debenhams, escalating a long-running feud between the UK retail giants.
The move, led by Mike Ashley’s group, which owns a 27 per cent stake in Boohoo, effectively prevented the resolution from passing at a general meeting on Friday. The motion required at least 66 per cent of shareholder approval but was defeated after 38 per cent of votes were cast against it.
Boohoo, which acquired the Debenhams brand out of administration in 2021, said it would continue to rebrand as Debenhams Group regardless of the result. The company’s ticker symbol will change to DEBS on the London Stock Exchange from Monday, although its listed name will remain Boohoo Group Plc.
Frasers Group’s CFO Chris Wootton defended the decision, saying: “When Boohoo stops destroying shareholder value, Frasers Group as its biggest shareholder will be happy to support its proposals.”
Boohoo hit back, accusing Frasers of acting in its “own self-interest”, and noting that “it was no surprise to the board that Frasers, a major competitor to the group, has voted against the resolution”.
Dan Finley, CEO of Boohoo, remained bullish despite the vote: “Debenhams is back, and we continue to move forward as Debenhams Group. The successful turnaround of Debenhams is the blueprint for the turnaround of the wider group. Our best days are ahead of us and I am excited for our future.”
The attempted rebrand comes amid pressure on Boohoo’s core fast-fashion business, which has been hit by falling sales, supply chain issues, and questions over governance. The company believes leveraging the heritage and trust in the Debenhams brand could revitalise its wider portfolio.
The latest clash follows a failed attempt last year by Frasers to install Mike Ashley and restructuring expert Mike Lennon on Boohoo’s board. Shareholders rejected the proposals, including a separate motion to remove Boohoo founder Mahmud Kamani as a director.
Despite their adversarial history, Frasers now insists it is seeking “constructive engagement” with Boohoo and reiterated its desire for Lennon to be granted a board seat.
“We do not see them as a major competitor to any part of our business,” the group said — a claim that will do little to mask the deepening tensions between two of Britain’s most prominent fashion retailers.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.